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Brian L. Roberts, Chairman and Chief Executive Officer of Comcast Corporation, said, “Comcast is off to a terrific start in 2019, financially, operationally and strategically. In the first quarter, we delivered strong EBITDA and earnings per share growth, as well as robust free cash flow. Comcast Cable had the best quarterly EBITDA growth in over a decade, while NBCUniversal again posted favorable results. We also continued to strengthen our leadership position in valuable customer relationships and premium content. Now with the inclusion of Sky, we grew customer relationships by 3.6% year-over-year, including 400,000 net additions in the first quarter, reaching over 54 million relationships in total. Across all parts of the company, our teams are executing at a high level and collaborating to drive growth and innovation. I’m excited about this quarter’s results and the opportunities ahead."

The comparability of our consolidated results was impacted by the fourth quarter 2018 Sky transaction. Sky’s results of operations are included in our consolidated financial statements following the acquisition date.

Earnings per Share (EPS) for the first quarter of 2019 was $0.77, an increase of 16.7% compared to the first quarter of 2018. On an adjusted basis, EPS increased 16.9% to $0.76 (see Table 5).

Capital Expenditures increased 6.0% to $2.1 billion in the first quarter of 2019. Cable Communications’ capital expenditures decreased 19.4% to $1.4 billion in the first quarter of 2019, reflecting a lower level of spending on customer premise equipment and scalable infrastructure. Cable capital expenditures represented 9.5% of Cable revenue in the first quarter of 2019 compared to 12.3% in last year’s first quarter. NBCUniversal’s capital expenditures of $453 million increased 68.2%, reflecting continued investment at Theme Parks. Sky had capital expenditures of $259 million, primarily reflecting investment in customer premise equipment, including continued deployment of Sky Q.

Dividends. During the first quarter of 2019, Comcast paid dividends totaling $869 million.

Consolidated Pro Forma Financial Results

Pro forma results are presented as if the Sky transaction occurred on January 1, 2017. The pro forma amounts are primarily based on historical results of operations, adjusted for the allocation of purchase price and excluding costs directly related to the transaction. These amounts are not necessarily indicative of what our results would have been had we operated Sky since January 1, 2017 (see Table 7 for reconciliations of pro forma financial data).

Beginning in the first quarter of 2019, Cable Communications results include our wireless phone service and certain other business development initiatives which were previously presented in Corporate and Other. Prior periods have been adjusted to reflect this presentation.

Revenue for Cable Communications increased 4.2% to $14.3 billion in the first quarter of 2019, driven primarily by increases in high-speed internet and business services revenue. High-speed internet revenue increased 10.1%, driven by an increase in the number of residential high-speed internet customers and rate adjustments. Business services revenue increased 9.5%, due to an increase in the number of customers receiving our services and rate adjustments. Wireless revenue increased 21.4%, reflecting an increase in the number of customer lines, partially offset by lower device sales as more customers bring their own device. Other revenue increased 7.0%, primarily driven by increases in revenue from our X1 licensing agreements and our security and automation services. Video revenue decreased 0.5%, due to a decline in the number of residential customers, partially offset by rate adjustments. Advertising revenue decreased 4.5%, primarily due to a decline in political advertising revenue. Voice revenue decreased 1.6%, reflecting a decrease in the number of residential voice customers.

Total Customer Relationships increased by 300,000 to 30.7millionin the first quarter of 2019. Residential customer relationships increased by 276,000 and business customer relationships increased by 25,000. At the end of the first quarter, 67.3% of our residential customers received at least two Xfinity products. Total high-speed internet customer net additions were 375,000, total video customer net losses were 121,000, total voice customer net losses were 53,000 and total security and automation customer net additions were 17,000. In addition, Cable Communications added 170,000 wireless lines in the quarter.

Net Additions

(in thousands)

1Q18 6

1Q19

1Q18 6

1Q19

Customer Relationships

Residential Customer Relationships

27,436

28,385

252

276

Business Services Customer Relationships

2,208

2,327

29

25

Total Customer Relationships

29,645

30,712

281

300

Residential Customer Relationships Mix

One Product Residential Customers

8,390

9,295

215

280

Two Product Residential Customers

9,060

9,009

42

17

Three or More Product Residential Customers

9,987

10,081

(6

)

(22

)

Residential High-Speed Internet Customers

24,214

25,449

351

352

Business Services High-Speed Internet Customers

2,034

2,148

29

23

Total High-Speed Internet Customers

26,249

27,598

379

375

Residential Video Customers

21,210

20,852

(93

)

(107

)

Business Services Video Customers

1,051

1,014

(3

)

(14

)

Total Video Customers

22,261

21,865

(96

)

(121

)

Residential Voice Customers

10,245

10,089

(70

)

(63

)

Business Services Voice Customers

1,253

1,307

16

10

Total Voice Customers

11,498

11,396

(54

)

(53

)

Total Security and Automation Customers

1,176

1,333

46

17

Total Wireless Lines

577

1,405

196

170

Adjusted EBITDA for Cable Communications increased 9.8% to $5.7 billion in the first quarter of 2019, reflecting higher revenue, partially offset by a 0.8% increase in operating expenses. Video programming costs increased 2.8%, primarily reflecting higher sports programming costs and retransmission consent fees. Non-programming expenses decreased 0.5%, reflecting decreases in other operating costs, customer service expenses, franchise and regulatory fees and advertising, marketing and promotion costs, partially offset by an increase in technical and product support expenses. This quarter’s Adjusted EBITDA per customer relationship increased 6.0%, and Adjusted EBITDA margin was 40.1%, compared to 38.1% in the first quarter of 2018. Cable Communications results include a loss of $103 million from our wireless business, compared to a loss of $189 million in the prior period.

NBCUniversal

1st Quarter

($ in millions)

2018 6

2019

Growth

NBCUniversal Revenue

Cable Networks

$3,157

$2,868

(9.2

%)

Excluding Olympics (see Table 6)

2,779

2,868

3.2

%

Broadcast Television

3,497

2,467

(29.4

%)

Excluding Olympics and Super Bowl (see Table 6)

2,304

2,467

7.1

%

Filmed Entertainment

1,647

1,768

7.4

%

Theme Parks

1,281

1,276

(0.4

%)

Headquarters, other and eliminations

(85

)

(66

)

NM

NBCUniversal Revenue

$9,497

$8,313

(12.5

%)

NBCUniversal Adjusted EBITDA

Cable Networks

$1,254

$1,262

0.7

%

Broadcast Television

507

387

(23.7

%)

Filmed Entertainment

203

364

78.7

%

Theme Parks

495

498

0.5

%

Headquarters, other and eliminations

(188

)

(174

)

NM

NBCUniversal Adjusted EBITDA

$2,271

$2,337

2.9

%

NM=comparison not meaningful.

Revenue for NBCUniversal in the first quarter of 2019 decreased 12.5% to $8.3 billion, compared to last year's results, which included an incremental $1.6 billion of revenue generated by the broadcasts of the 2018 PyeongChang Olympics and the NFL's Super Bowl LII at our TV businesses. Adjusted EBITDA increased 2.9% to $2.3 billion, primarily reflecting an increase at Filmed Entertainment, partially offset by a decline at Broadcast Television due the broadcasts of the PyeongChang Olympics and the NFL's Super Bowl LII in the first quarter of 2018.

Cable Networks

Cable Networks revenue decreased 9.2% to $2.9 billion in the first quarter of 2019, primarily reflecting decreases in distribution and advertising revenue. Excluding $378 million of revenue generated by the broadcast of the PyeongChang Olympics in the first quarter of 2018, revenue increased 3.2% (see Table 6). Distribution revenue decreased 6.8%, due to the broadcast of the PyeongChang Olympics in the first quarter of 2018, partially offset by contractual rate increases and the timing of contract renewals. Advertising revenue decreased 12.8%, due to revenue associated with the broadcast of the PyeongChang Olympics in the first quarter of 2018 and audience ratings declines, partially offset by higher pricing. Content licensing and other revenue decreased 12.0% due to the timing of content provided under licensing agreements. Adjusted EBITDA increased 0.7% to $1.3 billion in the first quarter of 2019, reflecting lower revenue, more than offset by a decrease in operating costs and expenses, including programming and production costs, due to the broadcast of the PyeongChang Olympics in the first quarter of 2018.

Broadcast Television

Broadcast Television revenue decreased 29.4% to $2.5 billion in the first quarter of 2019, primarily reflecting lower advertising revenue. Excluding $770 million of revenue generated by the broadcast of the PyeongChang Olympics and $423 million of revenue generated by the broadcast of the NFL's Super Bowl LII in the first quarter of 2018, revenue increased 7.1% (see Table 6). Advertising revenue decreased 44.3%, due to revenue associated with the broadcasts of the PyeongChang Olympics and the NFL's Super Bowl LII in the first quarter of 2018 and audience ratings declines, partially offset by higher pricing. Distribution and other revenue decreased 3.2%, due to the broadcast of the PyeongChang Olympics in the first quarter of 2018, partially offset by higher retransmission consent fees. Content licensing revenue increased 7.2% due to the timing of content provided under licensing agreements. Adjusted EBITDA decreased 23.7% to $387 million in the first quarter of 2019, reflecting lower revenue, partially offset by a decrease in programming and production costs, due to the broadcasts of the PyeongChang Olympics and the NFL's Super Bowl LII in the first quarter of 2018.

Filmed Entertainment

Filmed Entertainment revenue increased 7.4% to $1.8 billion in the first quarter of 2019, reflecting higher content licensing, theatrical and home entertainment revenue. Content licensing revenue increased 11.5%, driven by the timing of when content was made available under licensing agreements. Theatrical revenue increased 5.1%, due to the performance of films in this year's first quarter, including How to Train Your Dragon: The Hidden World and Us, partially offset by the performance of Fifty Shades Freed in the first quarter of 2018. Home Entertainment revenue increased 7.4%, primarily reflecting the success of Dr. Seuss' The Grinch. Adjusted EBITDA increased by 78.7% to $364 million in the first quarter of 2019, reflecting higher revenue as well as lower operating costs.

Theme Parks

Theme Parks revenue of $1.3 billion in the first quarter of 2019 was relatively consistent with the prior year period and, in part, reflects the timing of spring holidays, which benefited the same period last year. Adjusted EBITDA of $498 million was consistent with the prior year period.

Headquarters, Other and Eliminations

NBCUniversal Headquarters, Other and Eliminations include overhead and eliminations among the NBCUniversal businesses. For the quarter ended March 31, 2019, NBCUniversal Headquarters, Other and Eliminations Adjusted EBITDA loss was $174 million, compared to a loss of $188 million in the first quarter of 2018.

Sky

Pro forma results are presented as if the Sky transaction occurred on January 1, 2017. The pro forma amounts are primarily based on historical results of operations, adjusted for the allocation of purchase price and excluding costs directly related to the transaction. These amounts are not necessarily indicative of what our results would have been had we operated Sky since January 1, 2017 (see Table 7 for reconciliations of pro forma financial data).

1st Quarter

($ in millions) (pro forma)

2018

2019

Growth

Constant

Currency

Growth7

Sky Revenue

Direct-to-Consumer

$4,132

$3,834

(7.2

%)

(0.4

%)

Content

286

370

29.5

%

38.0

%

Advertising

631

593

(6.0

%)

0.7

%

Sky Revenue

$5,049

$4,797

(5.0

%)

1.9

%

Sky Operating Costs and Expenses

$4,250

$4,134

(2.7

%)

4.4

%

Sky Adjusted EBITDA

$799

$663

(17.0

%)

(11.3

%)

Adjusted EBITDA Margin

15.8

%

13.8

%

Pro Forma Revenue for Sky decreased 5.0% to $4.8 billion in the first quarter of 2019. Excluding the impact of currency, revenue increased 1.9%, primarily driven by higher content revenue, while advertising and direct-to-consumer revenues were relatively consistent with the prior year period. Content revenue increased 38.0% to $370 million, reflecting the wholesaling of sports programming, including exclusive sports rights recently acquired in Italy and Germany, increased penetration of premium sports and movie channels on third party pay TV networks in the UK and monetization of our slate of original programming.

Pro Forma Total Customer Relationships increased by 112,000 to 23.7 million in the first quarter of 2019.

Customers

Net Additions

(in thousands) (pro forma)

1Q18

1Q19

1Q18

1Q19

Total Customer Relationships

22,903

23,712

38

112

Pro Forma Adjusted EBITDAfor Sky decreased 17.0% to $663 million in the first quarter of 2019. Excluding the impact of currency, Adjusted EBITDA decreased 11.3%, reflecting a 4.4% increase in operating expenses, partially offset by higher revenues. The higher expenses were primarily driven by new contracts for Serie A and UEFA Champions League soccer rights in Italy and Germany, partially offset by lower other operating costs.

Corporate, Other and Eliminations

Corporate, Other and Eliminations primarily relate to corporate operations and Comcast Spectacor, as well as eliminations among Comcast's businesses. For the quarter ended March 31, 2019, the Corporate, Other and Eliminations Adjusted EBITDA6 loss was $175 million, compared to a loss of $244 million in the first quarter of 2018, which reflected an increase in eliminations associated with the 2018 PyeongChang Olympics.

Notes:

1

We define Adjusted EBITDA as net income attributable to Comcast Corporation before net income (loss) attributable to noncontrolling interests and redeemable subsidiary preferred stock, income tax benefit (expense), investment and other income (loss), net, interest expense, depreciation and amortization expense, and other operating gains and losses (such as impairment charges related to fixed and intangible assets and gains or losses on the sale of long-lived assets), if any. From time to time, we may exclude from Adjusted EBITDA the impact of certain events, gains, losses or other charges (such as significant legal settlements) that affect the period-to-period comparability of our operating performance. See Table 4 for reconciliation of non-GAAP financial measures.

2

All earnings per share amounts are presented on a diluted basis.

3

In first quarter 2019, we changed our presentation of Adjusted EPS to also exclude amortization expense for acquisition-related intangible assets. Adjusted EPS is a non-GAAP financial measure that presents the earnings generated by our ongoing core operations on a per share basis. Our presentation of Adjusted EPS is our diluted earnings per common share attributable to Comcast Corporation shareholders adjusted to exclude the effects of fair value investments and amortization of acquisition-related intangible assets, as well as the impact of certain events, gains, losses or other charges (such as from the sales of investments). For Adjusted EPS, the effects of fair value investments include realized and unrealized gains and losses, net, including impairments, on equity securities not accounted for under the equity method, as well as the equity in net income (losses), net, for our investment in Atairos Group, Inc. (Atairos follows investment company accounting and records its investments at their fair values each reporting period). Acquisition-related intangible assets include those recognized as a result of the application of Accounting Standards Codification Topic 805, Business Combinations (such as customer relationships). Amortization of acquisition-related intangible assets is significantly affected by the timing and size of our acquisitions and may have no correlation to our current operating results, as the acquisitions occurred in prior periods. Amortization of intangible assets not resulting from business combinations (such as software and acquired intellectual property rights used in our theme parks) is not excluded from Adjusted EPS.

4

Consolidated financial results include Sky results for periods following the acquisition on October 9, 2018.

5

We define Free Cash Flow as net cash provided by operating activities (as stated in our Consolidated Statement of Cash Flows) reduced by capital expenditures and cash paid for intangible assets. From time to time, we may exclude from Free Cash Flow the impact of certain cash receipts or payments (such as significant legal settlements) that affect period-to-period comparability. Cash payments for acquisitions and construction of real estate properties and the construction of Universal Beijing Resort are presented separately in our Consolidated Statement of Cash Flows and are therefore excluded from capital expenditures for Free Cash Flow. See Table 4 for reconciliation of non-GAAP financial measures.

6

Beginning in the first quarter of 2019, Comcast Cable's wireless phone service and certain other Cable-related business development initiatives are now presented in the Cable Communications segment. Results were previously presented in Corporate and Other. Prior periods have been adjusted to reflect this presentation. To be consistent with our current management reporting presentation, certain 2018 operating results were reclassified related to certain NBCUniversal businesses now presented in the Sky segment.

7

Sky constant currency growth rates are calculated by comparing the current period results to the comparative period results in the prior year adjusted to reflect the average exchange rates from the current year period rather than the actual exchange rates in effect during the respective prior year periods. See Table 8 for reconciliation of Sky's constant currency growth.

All percentages are calculated on whole numbers. Minor differences may exist due to rounding.

Conference Call and Other Information

Comcast Corporation will host a conference call with the financial community today, April 25, 2019 at 8:30 a.m. Eastern Time (ET). The conference call and related materials will be broadcast live and posted on its Investor Relations website at www.cmcsa.com. Those parties interested in participating via telephone should dial (800) 263-8495 with the conference ID number 8973128. A replay of the call will be available starting at 12:00 p.m. ET on April 25, 2019, on the Investor Relations website or by telephone. To access the telephone replay, which will be available until Thursday, May 2, 2019 at midnight ET, please dial (855) 859-2056 and enter the conference ID number 8973128.

Visit Comcast Corporation's Investor Relations website at www.cmcsa.com to access a copy of this press release.

Caution Concerning Forward-Looking Statements

This press release contains forward-looking statements. Readers are cautioned that such forward-looking statements involve risks and uncertainties that could cause actual events or our actual results to differ materially from those expressed in any such forward-looking statements. Readers are directed to Comcast’s periodic and other reports filed with the Securities and Exchange Commission (SEC) for a description of such risks and uncertainties. We undertake no obligation to update any forward-looking statements.

Non-GAAP Financial Measures

In this discussion, we sometimes refer to financial measures that are not presented according to generally accepted accounting principles in the U.S. (GAAP). Certain of these measures are considered non-GAAP financial measures under the SEC regulations; those rules require the supplemental explanations and reconciliations that are in Comcast’s Form 8-K (Quarterly Earnings Release) furnished to the SEC.

About Comcast Corporation

Comcast Corporation (Nasdaq: CMCSA) is a global media and technology company with three primary businesses: Comcast Cable, NBCUniversal, and Sky. Comcast Cable is one of the United States’ largest high-speed internet, video, and phone providers to residential customers under the Xfinity brand, and also provides these services to businesses. It also provides wireless and security and automation services to residential customers under the Xfinity brand. NBCUniversal is global and operates news, entertainment and sports cable networks, the NBC and Telemundo broadcast networks, television production operations, television station groups, Universal Pictures, and Universal Parks and Resorts. Sky is one of Europe's leading media and entertainment companies, connecting customers to a broad range of video content through its pay television services. It also provides communications services, including residential high-speed internet, phone, and wireless services. Sky operates the Sky News broadcast network and sports and entertainment networks, produces original content, and has exclusive content rights.
Visit www.comcastcorporation.com for more information.

Fair value investments include realized and unrealized (gains) losses on equity securities, net (as stated in Table 1), as well as the equity in net (income) losses, net, for our investment in Atairos.

Three Months Ended
March 31,

2018

2019

Realized and unrealized (gains) losses on equity securities, net

($28

)

($214

)

Equity in net (income) losses, net for investment in Atairos

(35

)

(374

)

Fair value investments before income taxes

(63

)

(588

)

Fair value investments, net of tax

($47

)

($438

)

(2)

Acquisition-related intangible assets include those recognized as a result of the application of Accounting Standards Codification Topic 805, Business Combinations (such as customer relationships).

Three Months Ended
March 31,

2018

2019

Amortization of acquisition-related intangible assets before income taxes

$

205

$

504

Amortization of acquisition-related intangible assets, net of tax

$

152

$

400

(3)

1st quarter 2018 net income attributable to Comcast Corporation includes a $128 million net income tax benefit as a result of federal tax legislation enacted in 2018.

(4)

1st quarter 2019 net income attributable to Comcast Corporation includes $159 million of other income, $118 million net of tax, resulting from the recognition of a previously deferred gain related to our investment in Hulu. 1st quarter 2018 net income attributable to Comcast Corporation includes $64 million of other income, $48 million net of tax, resulting from a gain on the sale of our investment in The Weather Channel.

(5)

1st quarter 2019 net income attributable to Comcast Corporation includes $51 million of operating costs and expenses, $41 million net of tax, related to the Sky transaction, primarily relating to the replacement of share-based compensation awards.

(6)

1st quarter 2019 net income attributable to Comcast Corporation includes $53 million of depreciation and amortization expense, $39 million net of tax, related to the 4th quarter 2018 as a result of adjustments to the purchase price allocation of Sky, primarily related to intangible assets and property and equipment.

Reconciliation of As Reported to Pro Forma(1) Financial Information (Unaudited)

Sky

Comcast

(in millions)

Pro Forma

Pro Forma

Pro Forma

Pro Forma

As Reported

Adjustments(1)

Sky

As Reported

Adjustments(1)

Comcast

Three Months Ended March 31, 2018

Revenue

$—

$5,049

$5,049

$22,791

$4,971

$27,762

Operating costs and expenses and other

—

4,250

4,250

15,547

4,176

19,723

Adjusted EBITDA

$—

$799

$799

$7,244

$795

$8,039

Three Months Ended March 31, 2019

Revenue

$4,797

$—

$4,797

$26,859

$—

$26,859

Operating costs and expenses and other

4,134

—

4,134

18,306

—

18,306

Adjusted EBITDA

$663

$—

$663

$8,553

$—

$8,553

Growth Rates

Revenue

NM

(5.0

)%

17.9

%

(3.3

)%

Operating costs and expenses and other

NM

(2.7

)%

17.7

%

(7.2

)%

Adjusted EBITDA

NM

(17.0

)%

18.1

%

6.4

%

NM=comparison not meaningful.

(1)

Pro forma information is presented as if the Sky transaction occurred January 1, 2017. Our pro forma information is primarily based on historical results of operations, adjusted for the effects of acquisition accounting and the elimination of costs and expenses directly attributable to the transaction, but does not include adjustments for costs related to integration activities, cost savings or synergies that have been or may be achieved by the combined businesses. Our pro forma information is not necessarily indicative of future results or what our results would have been had we operated Sky since January 1, 2017.

TABLE 8Reconciliation of Sky Constant Currency Growth (Unaudited)

Three Months EndedMarch 31,

(in millions)

2018(1)

2019

Growth %

Direct-to-Consumer

$3,851

$3,834

(0.4

%)

Content

268

370

38.0

%

Advertising

589

593

0.7

%

Revenue

$4,708

$4,797

1.9

%

Operating costs and expenses

$3,961

$4,134

4.4

%

Adjusted EBITDA

$747

$663

(11.3

)%

(1)

2018 results for entities reporting in currencies other than United States dollars are converted into United States dollars using the average exchange rates from the current period rather than the actual exchange rates in effect during the respective periods.